The seven-year loan will primarily be used to refinance existing short-term obligations in Egyptian pounds, helping the company align its liabilities more closely with its income.
Telecom Egypt announced it has secured of a long-term loan amounting to EGP 18 billion, facilitated by a consortium of 13 banks, during a press conference on Wednesday as it aims to bolster the company’s financial flexibility and improve its monetary inflows.
The seven-year loan will primarily be used to refinance existing short-term obligations in Egyptian pounds, helping the company align its liabilities more closely with its income.
Telecom Egypt's CEO, Mohamed Nasr, stated that the refinancing of their short-term EGP debt into a new facility with favorable terms is a crucial step in enhancing the company’s financial standing. This long-term facility provides us with greater financial flexibility and helps align our liabilities with our revenue streams more effectively, he added.
The loan consortium is led by the Commercial International Bank (CIB) and Banque Misr, with the National Bank of Egypt (NBE) serving as the mandated lead arranger.
Amr El-Ganainy, CIB's deputy CEO, expressed pride in the bank's role, emphasizing the significance of this financing for one of Egypt’s largest telecommunications entities.
Telecom Egypt has demonstrated strong performance recently, reporting a 35% year-on-year increase in consolidated revenues, reaching EGP 38 billion in the first half of 2024.
Earlier this year, the company acquired Egypt's first 5G license in an agreement valued at $150 million with the National Telecommunications Regulatory Authority (NTRA).
The company's WE Data brand is the leading internet service provider in the market, holding an impressive 80% market share, along with a 7% share of the mobile market, according to a 2023 report.
